Financial intermediaries may increase economic efficiency through intertemporal risk smoothing. However without an adequate regulation, intermediation may fail to do this. This paper studies the effects of a production shock in a closed economy and compares abilities of market-based and...

In the wake of the 2008-09 financial crisis, a number of European OECD countries introduced credit mediation schemes, as a new, often temporary mechanism to help ease access to finance by SMEs. This report investigates the nature of credit mediation and credit review schemes implemented in...